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BitTemple BitTalk Series Episode #1
ICO: A new game made newer
Contemporary Strategies &
Best Practices for ICO
Campaign Management
Presented by
Fra n co is Zh a n g , C A IA F R M CQ F
C o-fou n d e r & M a n a gi n g Pa r t n e rSupported by:
About Chaintech Partners
B l oc kc h a i n In c u b at i on & Cr ypto Inve st m e nt Re s e a rc h
• First blockchain venture supported by NTUitive
• Bespoke incubation service covering entire ICO lifecycle:
entity incorporation, legal counsel, KYC/AML, whitepaper,
tokenomics, smart contract, PR & community
management, content curation, exchange listing
application, market making, etc.
• Independent investment research on crypto assets
• Service tailored for needs of Crypto Funds: project due
diligence, legal structuring, acquiring licenses, etc.
2
FR
ICOs in 2017 and early 2018
It wa s l i ke a p a r t y to e n d a l l p a r t i e s .
• Inspired/lured by the very first batch of
successful ICOs, a huge amount of projects
emerged to launch their own ICOs
• ICOs lacking of fundamentals obtaining millions
of funding easily w/o mediocre white papers
• Listed tokens having absurd valuations
• Most ICOs become under water except a few
that maintained their market perceptions
3
FR
ICO scene since Jul 2018
A C r u e l N ew Wo r l d w i t h O p e n Wo u n d s U n h e a l e d
Ongoing bear market
• Since December 2017, Bitcoin’s price has
fallen nearly 70%, resulting in a general
decline in prices of cryptocurrencies.
• This has since triggered a “crypto winter”
worldwide.
• The ongoing bear market ensures that only
the best ICOs survive, emphasizing on
tokens with intrinsic utility.
Difficulty in fundraising spikes
• Amidst the ongoing bear market, all ICOs
are currently facing difficulty in raising
capital.
• ICO fundraising is facing stricter regulations
from government agencies such as China
and U.S.
• With increasingly bearish market sentiments
and high volatility, many VCs and investors
are investing significantly lesser in the ICO
space.
4
FR
Before planning for ICO
A few q u e st i o n s to a s k yo u rs e l f b efo re sta r t i n g o ff
5
Do you have clear and concrete answer for following questions?
• How much money do you plan to raise, and at what valuation?
• Does the business integrate well with blockchain?
• Does it make sense to have a decentralized business model?
• Can the business be tokenized, or at least be partially tokenized?
• What is the pain point to solve with blockchain integration?
• Are you ready to pay developers and ICO specialists fairly?
FR
Whitepaper 1.0
S t yl e , N a r rat i o n , To ke n M et r i c s , Di gn i t y
6
• Pick a style (scientific, business oriented, or hybrid) and stay consistent for
the entire work
• Tell the story in appropriate manner, WHITE PAPER IS NOT BUSINESS PLAN
• Provide token metrics without ambiguity: hard cap, soft cap, token supply,
token pricing, circulation mechanisms, etc.
• Make no exaggerated claims; never pretend to be doing anything beyond the
team’s capacity; quit talking about your market potential… All of these would
reduce the legitimacy of the project. If you are not a scum, don’t act like one.
The super basic basics
FR
Whitepaper 2.0
C o n s e n s u s , To ke n o m i c s , C o r p o rate G ove r n a n c e
The slightly advanced basics
• Consensus: the core and DNA of a decentralized autonomous organization
• Tokenomics: how does the token capture the value and reward holders and
participants, and more importantly, achieve price appreciation? Many
common mistakes to be found even in tokens with top market cap.
• Corporate Governance: How does the community run well, maintain
consensus without being compromised by corruption and manipulations?
7
FR
Smart Contract
C h o i c e o f sta n d a rd , S e c u r i t y A u d i t , A d va n c e d Inte grat i o n
The most overlooked crucial component in ICO campaign
• There are smart contracts for: token issuing, on-chain transactions, dApps,
protocol integration, etc.
• Choice of smart contract standards: ERC20, ERC721, ERC223, ERC777, NEM
(SDK), Hyperledger Fabric (HLF), Stellar smart contracts (SSC), etc. Do not go
gentle into that ERC20.
• Smart contracts need security audit, so do your main net and ICO operation
team; a single security breach can wipe out the entire project away.
8
FR
Corporate Structure for Token Issuing
Typ e of E nt i t y, Dom i c i l e C ou nt r y, S t r u c t u re of E nt i t i e s
About #foundation #company #BVI #Cayman
• Foundation: makes sense under specific circumstances; does not help you
with tax evasion; periodical auditing required; register as CLG (company
limited by guarantee) in Singapore; pros and cons apply.
• Company: the relationship with operational entity matters.
• Structure of Entities: often it requires very complicated structure to
segregate ownership, legal responsibilities, cash flow and tax exposure.
9
FR
Accounting Treatment for Tokens
How to account for tokens / money raised in ICO
• Income: safe, but subject to unfavoured tax treatment
• Unearned Revenue (liability): favourable yet tricky (think about it: what if
coin value declines to zero?)
• Intangible Asset: to some extent reasonable, hard to justify with regulators
for huge amount
• Inventory: special treatment needed for tokens not in circulation
• Equity / Financial Instruments: kindly seek opinions from Big 4
10
T h e re ’s n o p e r fe c t a n swe r ( n o t a n exc u s e to i gn o re )
FR
ICO Public Relations
M e d i a E xp os u re , Inf l u e n c e r Va l i d at i on , A d vi s ors
First Impression Matters!
• Media Exposure: A good exposure in crypto and mainstream media brings needed
attention to the ICO, Techcrunch, Coindesk etc. Ideally across different region.
• Influencers: Influencer’s opinion carry a lot of weight in this market especially with
their community following, a good review from influencer helps bring attention.
• Advisors: Having a strong and experienced advisors team boost the credibility and
network of the team and send out a strong signal of the team’s network.
11
FR
ICO Community Management
Te l e gra m , Re d d i t , A i r Dro ps , S m a r t C a m p a i gn s , B o u nt i e s
Community is the key pillar of any ICO!
• Social Media: Each social media targets at different audience. Most important ones
usually are Telegram, Twitter, Reddit, YouTube, Discord, etc. In addition, KakaoTalk
and Wechat are mainly used for Korean and Chinese communities respectively.
• Airdrops: A quick and dirty way to bring attention to your ICO, numbers matter to a
certain extent.
• Bounty Campaign: A well designed bounty campaign can incentivise your
community to spread the awareness of your ICO.
12
FR
Exchange Listing and Post ICO Activities
C h o i c e o f exc h a n ge , L i st i n g A p p l i cat i o n , M a r ket M a k i n g
The last mile delivery is the most definitive
• To list on centralized exchanges or decentralized exchanges.
• To list on exchanges with highest volume (and fee) or lower tier ones.
• To list in which country.
• How much to allocate on each exchanges (if listing on more than one).
• What to prepare for a listing application: project documents, team and
company background clearance, KYC/AML, legal opinion, etc.
• Market Making: through OTC, whales, 3rd party market makers, etc.
13
PR & Community Engagement Powered by Machine Learning & AI
Tuple technologies leverage on Big Data Analytics and Dynamic Machine Learning :
• Automatically models customer behavior directly from existing database. It applies techniques like
Deep Learning, Gradient Boosting etc, on your data and other 1500+ attributes collected through
Social Media and Experiments.
• Predicting each future actions that customers are likely to make. Reaching out to them at the right
time, with right content and at right channel
• Listening to the editorial content of media sources on a continuing basis, Identifying, saving and
analysing content related to brand, industry & competition
• Implement NLP Chatbot training to engage and nudge customers into buying.
Integration with Website, Skype & Telegram etc. Retraining of interface based on incoming queries.
Powered by Tuple
About BitTemple
C h e c k o u t htt ps : / / b i tte m p l e .co/
Thank You.
Francois Zhang, Claire Wu
+65 8114 3061, +65 9122 9209
info@chaintech.biz
Wechat Group:
Join our online groups and follow the
channels for community news and insights!
Telegram Group
https://t.me/ChaintechPartners
Telegram Channel
https://t.me/ChaintechResearch
Chaintech SG MeetUp Group
https://www.meetup.com/Chaintech-Partners/

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Chaintech BitTalk Series Episode 1

  • 1. BitTemple BitTalk Series Episode #1 ICO: A new game made newer Contemporary Strategies & Best Practices for ICO Campaign Management Presented by Fra n co is Zh a n g , C A IA F R M CQ F C o-fou n d e r & M a n a gi n g Pa r t n e rSupported by:
  • 2. About Chaintech Partners B l oc kc h a i n In c u b at i on & Cr ypto Inve st m e nt Re s e a rc h • First blockchain venture supported by NTUitive • Bespoke incubation service covering entire ICO lifecycle: entity incorporation, legal counsel, KYC/AML, whitepaper, tokenomics, smart contract, PR & community management, content curation, exchange listing application, market making, etc. • Independent investment research on crypto assets • Service tailored for needs of Crypto Funds: project due diligence, legal structuring, acquiring licenses, etc. 2
  • 3. FR ICOs in 2017 and early 2018 It wa s l i ke a p a r t y to e n d a l l p a r t i e s . • Inspired/lured by the very first batch of successful ICOs, a huge amount of projects emerged to launch their own ICOs • ICOs lacking of fundamentals obtaining millions of funding easily w/o mediocre white papers • Listed tokens having absurd valuations • Most ICOs become under water except a few that maintained their market perceptions 3
  • 4. FR ICO scene since Jul 2018 A C r u e l N ew Wo r l d w i t h O p e n Wo u n d s U n h e a l e d Ongoing bear market • Since December 2017, Bitcoin’s price has fallen nearly 70%, resulting in a general decline in prices of cryptocurrencies. • This has since triggered a “crypto winter” worldwide. • The ongoing bear market ensures that only the best ICOs survive, emphasizing on tokens with intrinsic utility. Difficulty in fundraising spikes • Amidst the ongoing bear market, all ICOs are currently facing difficulty in raising capital. • ICO fundraising is facing stricter regulations from government agencies such as China and U.S. • With increasingly bearish market sentiments and high volatility, many VCs and investors are investing significantly lesser in the ICO space. 4
  • 5. FR Before planning for ICO A few q u e st i o n s to a s k yo u rs e l f b efo re sta r t i n g o ff 5 Do you have clear and concrete answer for following questions? • How much money do you plan to raise, and at what valuation? • Does the business integrate well with blockchain? • Does it make sense to have a decentralized business model? • Can the business be tokenized, or at least be partially tokenized? • What is the pain point to solve with blockchain integration? • Are you ready to pay developers and ICO specialists fairly?
  • 6. FR Whitepaper 1.0 S t yl e , N a r rat i o n , To ke n M et r i c s , Di gn i t y 6 • Pick a style (scientific, business oriented, or hybrid) and stay consistent for the entire work • Tell the story in appropriate manner, WHITE PAPER IS NOT BUSINESS PLAN • Provide token metrics without ambiguity: hard cap, soft cap, token supply, token pricing, circulation mechanisms, etc. • Make no exaggerated claims; never pretend to be doing anything beyond the team’s capacity; quit talking about your market potential… All of these would reduce the legitimacy of the project. If you are not a scum, don’t act like one. The super basic basics
  • 7. FR Whitepaper 2.0 C o n s e n s u s , To ke n o m i c s , C o r p o rate G ove r n a n c e The slightly advanced basics • Consensus: the core and DNA of a decentralized autonomous organization • Tokenomics: how does the token capture the value and reward holders and participants, and more importantly, achieve price appreciation? Many common mistakes to be found even in tokens with top market cap. • Corporate Governance: How does the community run well, maintain consensus without being compromised by corruption and manipulations? 7
  • 8. FR Smart Contract C h o i c e o f sta n d a rd , S e c u r i t y A u d i t , A d va n c e d Inte grat i o n The most overlooked crucial component in ICO campaign • There are smart contracts for: token issuing, on-chain transactions, dApps, protocol integration, etc. • Choice of smart contract standards: ERC20, ERC721, ERC223, ERC777, NEM (SDK), Hyperledger Fabric (HLF), Stellar smart contracts (SSC), etc. Do not go gentle into that ERC20. • Smart contracts need security audit, so do your main net and ICO operation team; a single security breach can wipe out the entire project away. 8
  • 9. FR Corporate Structure for Token Issuing Typ e of E nt i t y, Dom i c i l e C ou nt r y, S t r u c t u re of E nt i t i e s About #foundation #company #BVI #Cayman • Foundation: makes sense under specific circumstances; does not help you with tax evasion; periodical auditing required; register as CLG (company limited by guarantee) in Singapore; pros and cons apply. • Company: the relationship with operational entity matters. • Structure of Entities: often it requires very complicated structure to segregate ownership, legal responsibilities, cash flow and tax exposure. 9
  • 10. FR Accounting Treatment for Tokens How to account for tokens / money raised in ICO • Income: safe, but subject to unfavoured tax treatment • Unearned Revenue (liability): favourable yet tricky (think about it: what if coin value declines to zero?) • Intangible Asset: to some extent reasonable, hard to justify with regulators for huge amount • Inventory: special treatment needed for tokens not in circulation • Equity / Financial Instruments: kindly seek opinions from Big 4 10 T h e re ’s n o p e r fe c t a n swe r ( n o t a n exc u s e to i gn o re )
  • 11. FR ICO Public Relations M e d i a E xp os u re , Inf l u e n c e r Va l i d at i on , A d vi s ors First Impression Matters! • Media Exposure: A good exposure in crypto and mainstream media brings needed attention to the ICO, Techcrunch, Coindesk etc. Ideally across different region. • Influencers: Influencer’s opinion carry a lot of weight in this market especially with their community following, a good review from influencer helps bring attention. • Advisors: Having a strong and experienced advisors team boost the credibility and network of the team and send out a strong signal of the team’s network. 11
  • 12. FR ICO Community Management Te l e gra m , Re d d i t , A i r Dro ps , S m a r t C a m p a i gn s , B o u nt i e s Community is the key pillar of any ICO! • Social Media: Each social media targets at different audience. Most important ones usually are Telegram, Twitter, Reddit, YouTube, Discord, etc. In addition, KakaoTalk and Wechat are mainly used for Korean and Chinese communities respectively. • Airdrops: A quick and dirty way to bring attention to your ICO, numbers matter to a certain extent. • Bounty Campaign: A well designed bounty campaign can incentivise your community to spread the awareness of your ICO. 12
  • 13. FR Exchange Listing and Post ICO Activities C h o i c e o f exc h a n ge , L i st i n g A p p l i cat i o n , M a r ket M a k i n g The last mile delivery is the most definitive • To list on centralized exchanges or decentralized exchanges. • To list on exchanges with highest volume (and fee) or lower tier ones. • To list in which country. • How much to allocate on each exchanges (if listing on more than one). • What to prepare for a listing application: project documents, team and company background clearance, KYC/AML, legal opinion, etc. • Market Making: through OTC, whales, 3rd party market makers, etc. 13
  • 14. PR & Community Engagement Powered by Machine Learning & AI Tuple technologies leverage on Big Data Analytics and Dynamic Machine Learning : • Automatically models customer behavior directly from existing database. It applies techniques like Deep Learning, Gradient Boosting etc, on your data and other 1500+ attributes collected through Social Media and Experiments. • Predicting each future actions that customers are likely to make. Reaching out to them at the right time, with right content and at right channel • Listening to the editorial content of media sources on a continuing basis, Identifying, saving and analysing content related to brand, industry & competition • Implement NLP Chatbot training to engage and nudge customers into buying. Integration with Website, Skype & Telegram etc. Retraining of interface based on incoming queries. Powered by Tuple
  • 15. About BitTemple C h e c k o u t htt ps : / / b i tte m p l e .co/
  • 16. Thank You. Francois Zhang, Claire Wu +65 8114 3061, +65 9122 9209 info@chaintech.biz Wechat Group:
  • 17. Join our online groups and follow the channels for community news and insights! Telegram Group https://t.me/ChaintechPartners Telegram Channel https://t.me/ChaintechResearch Chaintech SG MeetUp Group https://www.meetup.com/Chaintech-Partners/